Bill > H4194

This bill, titled the "Family Financial Protection Act," aims to enhance consumer protection by establishing new rules for handling consumer debts, which are defined as obligations primarily for personal, family, or household purposes. Key provisions include exempting a significant portion of a debtor's weekly earnings from garnishment, specifically the amount less than ninety times the greater of the federal or state minimum hourly wage, with any excess earnings subject to a 10% garnishment limit, and also protecting pension funds from being attached to satisfy consumer debts. The bill sets a strict four-year statute of limitations for initiating actions to collect consumer debts, starting from the date of charge-off, placement for collection, or 180 days after the last payment to the original creditor, and clarifies that payments or affirmations of debt after this period do not revive the debt or extend the limitation period, except for voluntary payments made after the period expires which do not revive the debt. Furthermore, it limits the interest rate on judgments for consumer debts to a specific range tied to Treasury yields and caps attorney's fees that creditors can recover, while allowing prevailing debtors to recover their attorney's fees. Violations of this Act are also considered violations of Chapter 93A, a broad consumer protection law in Massachusetts, and any contract provision that violates the Act is void. The bill also introduces protections against debtors being imprisoned for debt by requiring financial affidavits and limiting the issuance of arrest warrants.